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Distributed Small-Scale Wind in New Zealand: Advantages, Barriers and Policy Support Instruments. Martin Barry 17 th July, 2007. Overview. Definition Aim & Method Key Issues Facing the Industry SSW Internationally & New Zealand Advantages Key Findings. Definition.
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Distributed Small-Scale Wind in New Zealand:Advantages, Barriers and Policy Support Instruments Martin Barry 17th July, 2007
Overview Definition Aim & Method Key Issues Facing the Industry SSW Internationally & New Zealand • Advantages Key Findings
Definition Distributed Small-Scale Wind (SSW): A wind project with 3 or less utility-scale turbines connected to the local lines network Typical project size between 0.5 – 5 MW
Aim To establish whether distributed, SSW in NZ is worthy of public policy support and if so, determine the most effective policy instruments to promote its uptake.
Method • International review: Journal articles, international wind energy associations, govt. publications, Wind Power Monthly magazine, GWEC • New Zealand • Interviews with 22 energy industry stakeholders • Rural mail survey
Method Rural Survey Questions 1. Do you support/oppose wind power as a means of generating electricity in New Zealand? 1 2 3 4 5 Strongly support Support Indifferent Oppose Strongly oppose
Method Rural Survey Questions 2. Please imagine a new small-scale (2 turbine) wind farm placed in your district. How would you view the impact of such a wind farm? 1 2 3 4 5 Very positive Positive Neutral Fairly negative Negative
Method Rural Survey Questions 3. Please imagine a new small-scale (14 turbine) wind farm placed in your district. How would you view the impact of such a wind farm? 1 2 3 4 5 Very positive Positive Neutral Fairly negative Negative
Method Rural Survey Questions 4. Is the idea of installing a wind turbine on your land appealing to you? 1 2 3 4 5 Very interested Possibly interested Not sure Prob not interested Definitely not interested
Method Rural Survey Questions 5. Is the idea of installing a wind turbine on your land appealing to you? If government support was offered (to ensure the ROI is comparable with other investments. 1 2 3 4 5 Very interested Possibly interested Not sure Prob not interested Definitely not interested A survey of this type has not yet been done in New Zealand
Key Issues NZ wind industry is failing to capitalise on the world- class wind resource it has available
Growth Rate • Behind OECD average
Growth Rate • Intermittent
Key Issues NZ wind industry has adopted 4 characteristics that are limiting its future potential growth: • Trend toward large-scale (local opposition) • Limited flow of investment • Limited manufacturing capacity • High geographic concentration There is arguably a need to reassess the way the industry is developing
Key Issues NZ wind industry has adopted 4 characteristics that are limiting its future potential growth: • Trend toward large-scale (local opposition) • Limited flow of investment • Limited manufacturing capacity • High geographic concentration There is arguably a need to reassess the way the industry is developing
Trend toward large-scale NZ wind developers favour the ‘big is better’ approach • 98% of installed capacity comes from farms with 15 or more turbines Leading to increased local opposition & lengthening consent processes • E.g. Project West Wind delayed more than 15 months • Also Project Hayes, Awhitu, Tararua 3, Te Waka Ranges • Social acceptance is a key limiting factor of wind’s potential growth, e.g. UK
Limited flow of investment • 98% of total generating capacity being owned by only three developers • Meridian & Trustpower also investing in Australia c.f. • Ireland: More than 40 investors • Denmark: More than 150,000 households
Advantages of SSW Increased local public acceptance Facilitates community ownership Supports local manufacturing Potential for distributed generation benefits Utilises small high-wind sites
Advantages of SSW 1. Increased local public acceptance - 80% positive about SSW in local area - 50% positive about a large wind farm (14+ turbines)
Advantages of SSW 1. Increased local public acceptance Significantly reduced NIMBY effect
Method Rural Survey Questions 1. Do you support/oppose wind power as a means of generating electricity in New Zealand? 1 2 3 4 5 Strongly support Support Indifferent Oppose Strongly oppose
Advantages of SSW 1. Increased local public acceptance Significantly reduced NIMBY effect Attitude toward large-scale wind farm Attitude toward SSW 23% 3.3% n = 302
Advantages of SSW 1. Increased local public acceptance • ‘Big is better’ is possibly creating an anti-wind sentiment • A spread of turbine clusters throughout NZ will give people a chance to familiarise themselves with wind on a scale that they find more acceptable and less intrusive
Advantages of SSW 2. Facilitates community ownership Widespread throughout Germany, Denmark, the Netherlands & Sweden
Advantages of SSW NZ Context 2. Facilitates community ownership • Proven to increase local public acceptance: • Greater tolerance of effects • Removes hostility toward large, commercial developers • Alleviates tensions between local and national interest • A new source of capital: • Greater investment pool • Increases competition in generation • Increases geographic diversity of wind capacity
Advantages of SSW NZ Context 2. Facilitates community ownership • Involves farmers in wind: • Utilise NZ’s vast rural potential for electricity generation • Opportunity for farming sector to partially offset emissions • Reduce the need for intensifying land use • Has demonstration value for the public: • Improve understanding of the link between energy and climate • Increase awareness of energy conservation
Advantages of SSW Survey found that rural landowners have a high degree of interest NZ Context 66% interested in owning a turbine on their land 74.7% interested if government support is offered
Not Covered Today Disadvantages Barriers Policy Instruments
Key Findings • SSW has the potential to alleviate issues in the wind industry & the wider energy sector • Developing SSW would likely provide faster industry growth • Faster consent processes • More investors • Greater number of suitable sites (cf. large wind farms) Source: (BMU, 2006) Source: (BMU, 2006)
Key Findings • People are significantly more positive about SSW being developed in their local area • The NIMBY effect is significantly reduced with SSW Source: (BMU, 2006) Source: (BMU, 2006) • Rural landowners in NZ are interested in community ownership SSW should not be developed instead of large-scale wind farms, but rather alongside them
Thank you Thesis can be downloaded fromhttp://hdl.handle.net/10063/87